Developments at Aker Seafoods during the fourth quarter of 2008 reflected a
challenging market for whitefish. Prices declined over the year, while raw
material costs remained strong for the first nine months of 2008. For the
fourth quarter alone, however, a substantial fall in raw material prices
affected the Aker Seafoods result. The group's processing operations in the
European Union made progress during the year, and particularly in the fourth
quarter.
Operating revenues came to NOK 630 million in the fourth quarter, up from NOK
466 million in the same period of 2007. Aker Seafoods France accounted for NOK
148 million of the increase. Aker Seafoods achieved earnings before interest,
taxes, depreciation and amortization (EBITDA) of NOK 23 million in the fourth
quarter, compared with NOK 13 million in the same period of 2007.
- In the fourth quarter we completed several strategical moves as planned. We
have made changes to our production, which will lead to more fresh production
and better productivity. We expect that the changes to enhance profitability
and value creation in 2009. In addition, we have reduced the number of
operative vessels and plan to replace one of our older trawlers sometime this
year. Upgrading our fleet contributes to increased flexibility to deliver fresh
fish to our facilities at the same time as it enhances quota utilization, says
Aker Seafoods CEO Yngve Myhre.
Raw material prices were substantially lower for cod and haddock than in the
same period of 2007, but up slightly for saithe. Prices declined by six and
seven per cent respectively for frozen and fresh cod fillet products, and by 16
per cent for frozen haddock fillets. The inventory of finished products in
Norway is reduced during the fourth quarter, but remained significantly higher
than in 2007.
Aker Seafoods fleet experienced several dockings during the quarter cut the
number of harvesting days compared with the same period of 2007. However, the
harvested volume rose by six per cent, which shows an increase in harvesting
efficiency. Bunkers costs fell significantly from the second and third
quarters, but remained higher than in the same period of 2007. As stock is
increasing, the quotas for both cod and haddock increase significantly in 2009.
In continental Europe, Aker Seafoods France experienced good sales of fresh
consumer-packed fish in the fourth quarter. Biomass growth was also good in the
fourth quarter. The Danish and Swedish businesses faced challenges in securing
sufficient raw material in the fourth quarter, while their production of fresh
consumer-packed products stayed high. Sales of frozen products from Denmark
were affected by falling prices.
Operating revenues for 2008 were NOK 2 719 million, an increase of 16 per cent
from the year before, which includes Aker Seafoods France. EBITDA came to NOK
144 million as against NOK 189 million in 2007.
For further information, please contact:
Yngve Myhre, CEO, Aker Seafoods ASA. Telephone +47 24 13 01 60
Gunnar Aasbø, CFO, Aker Seafoods ASA. Telephone +47 24 13 01 60
